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PropTech’s market size has grown exponentially over the past decade and a half. Why? It’s working to disrupt the property market – which has historically been a dinosaur of an asset class.
Using technology to disrupt age-old systems is nothing new. FinTech has democratised and simplified the finance sector (think Monzo and Funding Circle), MedTech has mobilised the world of health (think Babylon’s GP at Hand app) and even RecTech has changed the way talent is recruited and retained (yes, LinkedIn).
As you may have guessed, PropTech is the merged term for property technology, and while the trend is global, its name takes a different shape across the Atlantic. America often refers to the same industry as real estate technology. So, putting synonyms aside, what’s the market size of PropTech?
Well, to answer that we need to understand what PropTech comprises of. Put really simply, a PropTech company is a company that makes anything to do with property easier, through the power of technology.
Sub-sectors include both commercial and residential. Sub-sub-sectors include:
Forbes states that “In 2017, global venture investments into PropTech amounted to over $12 billion.” In GBP, that equates to £9.6 billion today. In 2018, the market enjoyed continued growth, with a further $4 billion invested in real estate technology start ups. 11 years ago in 2008, this figure was just US$20 million.
Across the world, and according to Regus, there are over 6,000 PropTech or real estate technology businesses.
It looks likely. Combined with the surge of commercially smart buildings, assets are being injected with technology that aids the user and inhabitant. Often, workforces are more productive, well and loyal if they’re working in a space that supports them. The vastness of PropTech’s market size also serves to suggest it will keep on growing – in all directions.